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Design/methodology/approach – A literature review of the impact of the terrorist threat to workplaces is presented using academic research and journalistic commentary. This review informs research collected in seven organizations via in-depth interviews of 40 minutes length conducted with staff and management in the administrative, legal, retail, sporting and services sectors. In total, 55 interviews were conducted with an additional 50 respondents who were unavailable for interviews completing surveys.
Findings – A number of significant negative impacts of the threat of terrorism on Melbourne workplaces are identified. The most significant were workplace discrimination and diversity management, cultural change to be security oriented, and increased occupational stress.
Research limitations/implications – The sample population for the research is quite small so the conclusions cannot be considered generalizable. Rather, the research represents specific cases where the impacts are felt and, as such, may exist in other sectors and cities. The results are highly concerning and suggest that terrorism has a detrimental effect at work and on life.
Practical implications – The findings can assist organizations in preparing management responses and actions in preventing the negative impacts of the threat of terrorism.
Originality/value – Research of this kind is extremely limited yet of the highest importance to organizations in large cities.
Introduction
Terrorism has existed for many years and has been understood and interpreted in a variety of ways. As its meaning changes over time perceptions of the phenomenon take the form of its most recent and popularised occurrences. As such, the attacks in New York, Madrid and London have a strong influence on the threat perceptions of Australians. While this threat is viewed to be less than in the USA and the UK a significant impact is experienced in Australian workplaces. Terrorism is carried out against non-combatants and on September 11 it targeted workplaces. In Madrid and London, it targeted train commuters en route to work. Terrorism often targets the employed population by design. While no universally agreed definition of terrorism has been reached a preliminary one can be offered. Williams (2004, p. 7) defines it as “politically [including ideologically, religiously or socially – but not criminally] motivated violence, directed generally against non-combatants, intended to shock and terrify, to achieve a strategic outcome”. In this paper the limited literature discussing this problem is surveyed and is separated in two sections; valid and invalid research. The valid research is two studies that examine the problem using academic method in a systematic study and the invalid research is the abundant journalistic and anecdotal sources. Research findings from interviews and surveys conducted in organisations Melbourne, Australia are presented. Respondents report several instances where their perceptions of the terrorist threat have a negative impact on workplace relations.
The academic research
Research into terrorism and its impact on workplaces is limited. It is general, economically focussed, and providing of surface descriptions of related problems rendering it mostly uninformative for study. Three studies from the USA have provided some findings that relate to workplaces and management. These studies examine the impact of the threat of terrorism following September 11. This research is relevant in any city where the threat of terrorism is perceived to exist as it measures the attitudes and beliefs of those who perceive a threat. While Australian cities are in lower threat environments, it is likely that in post September 11 Australia workplaces are affected in less extreme yet similar ways.
Alexander (2004) uses September 11 and the anthrax attacks of 2001 as illustrative of the threat posed to organizations. Interview data is used to argue “Any prospective terrorist attacks in the United States or abroad will victimize labor” (Alexander, 2004, p. 124). Alexander (2004) argues the threat of terrorism perceived following an attack has a negative affect on the health and well being of employees and managers. These effects can take months to years to subside and have a disastrous impact on satisfaction and productivity. Those affected will change organizations and professions, move house, and reprioritise life goals placing less importance on employment and more on family and leisure. Others will continue to work through and may be asked to perform to a higher level to return operations to a pre-terrorism threat state. These people experience high levels of stress and anxiety that may manifest as depression and other mental illnesses, the most damaging of which is post traumatic stress disorder. According to Alexander (2004, p. 128) in the months following the Oklahoma City bombing people were absent frequently, took leave as soon as it accrued, left their jobs, and engaged in reckless behaviour such as alcohol and narcotic abuse and excessive smoking. Organizations affected on September 11 shared these experiences. Other affects include a desire to join social organizations such as trade unions, lower demand for high profile positions in prestigious organizations especially when they are housed in large cities, and job insecurity as economic impacts are felt. This creates a significant workplace relations management problem as these affects often lead to decreased productivity. Alexander (2004) further indirectly refers to occupational health and safety considerations, business continuity issues, culture and managing diversity.
Alexander and Alexander (2002) use interview data to examine a number of effects the September 11 and anthrax attacks had and are having on American business. Much of the study is devoted to macro and micro economic issues, their impact on business and flow-on impacts on workplace relations. Alexander and Alexander (2002) investigate how economic affects from terrorism threat perceptions impact on workplace relations. These are economic slowdown, higher unemployment and underemployment, decreased consumer confidence and interest rate changes. It is further argued that the September 11 and anthrax attacks had significant impacts on future investment and business decisions, inventory and distribution systems and organizational culture. This leads to downsizing which has a negative psychological impact on the workforce.
Inventory and distribution systems were interrupted in New York and Washington, cities where just-in-time (JIT) inventory is prevalent. Transport infrastructures are the life line of JIT inventory and the terrorism threat makes the benefits negligible and the system vulnerable. Alexander and Alexander (2002, pp. 51-2) suggest that organizations should have stock on hand and backup facilities that hold materials for when a threat suspends deliveries hence negating JIT inventory benefits. A disruption of JIT inventory systems can lead to an underutilization of staff and short-run layoffs. Perhaps the most significant of the workplace impacts is the change in cultural focus to be security oriented. Security upgrades, it is argued, must be accompanied by the fostering of security awareness to be effective which requires recruiting specialist security staff and training.
Mainiero and Gibson (2003) provide survey data from 5,860 respondents regarding the “emotional fallout from 9-11” conducted in December 2001. Similar studies exist yet fail to draw significant conclusions. Mainiero and Gibson (2003) argue; The terrorism of September 11th, 2001, unleashed primal emotions in the minds and hearts working in corporations all across America. The magnitude of the violence and the relative randomness of those who were affected left us (sic) feeling traumatized and horrified.
People in organizations throughout the USA experience trauma as a result of the attacks. Three emotional responses were exhibited by respondents: fear, denial and anger. Respondents reported profound fear and described themselves as “dumbfounded and scared”, denial manifested as being dismissive of co-workers who claimed trauma as a result of September 11 and expressing that it “should not affect” their working life, and anger which was directed at employers who were perceived as being unsympathetic to the emotional ramifications (Mainiero and Gibson, 2003). Such feelings create conflict and reduced wellbeing in workplace relationships and lead to decreased satisfaction and increased stress resulting in absenteeism, turnover, and lower productivity. The study additionally concluded that proximity of workplaces to the World Trade Towers is a factor where a greater distance led to less negative emotional responses. Women were found to be more affected, and both genders were more affected if they were married and had children. The authors theorise that women are more willing to express feelings and people with families are more likely to reprioritise the importance of work and be more sensitive to risk.
The journalistic commentary
While formal research is limited the same cannot be said for anecdotal and journalistic commentary. Based on simple interviews and observation a myriad of writers have contemplated and theorised the impact of terrorism threat perceptions on workplaces. This literature is largely speculative and from an American perspective yet it serves to direct more rigorous academic endeavour. Broad themes are identified and presented here.
Psychological impacts
The potential for negative psychological impacts in American workplaces following September 11 is acknowledged in research and anecdotal literature alike. Such impacts include feelings of vulnerability and anxiety leading to high occupational stress and low job satisfaction (Summers, 2001). This has a flow-on affect in workplaces disrupting culture, harmony, productivity, and causing interpersonal and industrial disputes, absenteeism and turnover. Sullivan and Anderson (2004) identifies five specific fears that employees experience since September 11; working in tall or symbolic structures, business air travel, working in industries or regions perceived as vulnerable, working in industries not perceived as vulnerable due to “graphic news coverage”, and a heightened awareness of mortality leading to a reassessment of priorities away from work to family and leisure. Poe (2001, p. 46) notes that the attack on the World Trade Towers is particularly fearsome as office workers were not incidental victims but targets by design. Office workers all over America likely feel vulnerable. Conditions of high stress and fear make effective workplace relations difficult.
Technological change
Organizations may adopt technology quicker to limit the need for commuting, business travel, and boardroom style meetings. It is estimated that there is a 50 per cent increase in the use of electronic conferencing in the USA since September 11 among companies that would otherwise require employees to travel frequently (Summers, 2001). According to interviews conducted by Summers (2001): … 58 percent of travel managers surveyed said that company trips will be curtailed over the next several months and only 19 percent said that business travel would proceed as planned…these findings reveal a future workplace with much heavier reliance on the flows of digital information.
Fewer expatriate staff is needed if with sophisticated communication methods (Tahmincioglu, 2001, p. G-1). E-mail, video conferencing, and “telecommuting”, where work communities exist almost entirely in an online format, will be used in preference to face to face meetings, staff exporting and business travel (Mahmud, 2003). According to Mahmud (2003), it is a matter of “working smarter, not harder” in confronting the terrorism threat. Technology change is often resisted, however, linking the change with addressing the terrorism threat will lead to greater acceptance. A greater challenge may present in unionised workplaces or where technological innovation has never formed part of culture. Employers need to be wary of abruptly changing traditional work conditions.
Cultural change
Organizations have increased physical security at perceived vulnerable locations yet it is insufficient if not accompanied by the fostering of security awareness and the development of a security oriented culture. People are encouraged to willingly participate in security procedures, be aware and alert to strange behaviour and to report anything unusual, and to receive security training mainly in using security equipment. Often, security personnel will be hired to perform these tasks. Improved physical security is often implemented sceptically by employers to fulfil occupational health and safety obligations and to make employees feel safer. No real improvement can be realised in these situations. St John (1991) argues that in some airports security upgrades are often understaffed with underpaid and untrained workers. According to Alexander and Alexander (2002, p. 55), “Some have likened investment on security measures to funds allocated to reducing pollution in that they are both socially helpful but economically unproductive”. This is a dangerous assumption. The September 11 hijackers were able to exploit lax security at airports to carry out their acts of terrorism. The commercial air travel sector has subsequently devoted time and money to improving security through physical security upgrades and fostering security awareness. Surveillance technology and monitoring can improve security and develop a security-oriented culture. Many employers are hesitant to implement such measures for fear of legal ramifications for privacy breaches but MacDonald (2004, p. 34) argues “The law creates few barriers for employers installing video camera' for surveillance in the workplace'. A greater concern is undermining employee trust and creating authoritarian management control methods.
Workplace diversity: conflict and management
Workplace diversity management has proved difficult since September 11. Racist sentiments, misunderstandings, rage and suspicion aimed at Muslim co-workers have been reported in America upsetting workplace dynamics causing alienation and emotional ramifications. Investigations by Mourtada (2004, pp. 24-6) and Healey (2004, pp. 25-7) have discovered when this occurs mistrust, bigotry and violence, discrimination, workplace bullying, a collapse of work teams, low motivation, high absenteeism and turnover, low morale, and decreased satisfaction and productivity ensues. Failure to prevent discriminatory behaviour can have significant legal consequences. Sixel (2003) reports on an Egyptian worker who successfully sued for unfair dismissal from an upmarket restaurant in the USA when discovering that managers had attributed bad performance post-September 11 to having a Muslim employee. The Equal Employment Opportunity Commission won $1.4 million USD in the two years following September 11 from employers for similar discriminations.
Occupational health and safety
Protecting workplaces from terrorism is considered by many firms to be a occupational health and safety responsibility (Conlin et al., 2001, p. 38; Nighswonger, 2002, pp. 24-27). Organizations are considering the safety of its people in ways that had previously not been considered. The increased responsibility for firms has led to improved access, production, and process security, increases in disaster and emergency response training, first aid training, and increase in emergency response drills (Nighswonger, 2002, p. 25).
Leadership
Kennedy (2001, pp. 18-19) and Argenti (2002, pp. 103-109) argue that effective leadership in times of a heightened terrorist threat helps organizations maintain strong workplace relations. Argenti (2002, p. 104) argues that the threat of terrorism creates low morale and a workforce desiring up to date information. Leaders must maintain a visible presence and maintain effective communications in the workplace. Healthy dialogue will help employees deal with their emotions and socialisation at work can be a uniting influence when many would feel safer at home.
Workplace spirituality
Spirituality in the workplace is a phenomenon that is gaining in popularity (Robbins et al., 2003, p. 60). According to Robbins et al. (2003, p. 60) it recognises that people are “nourished by meaningful work that takes place in the context of a community”. Stewart (2002, p. 92) argues that despite the threat of terrorism and the economic uncertainty it brings, workplace spirituality offers a “safe harbour” and a meaning to life and work. “An emerging spiritual renaissance in the workplace” keeps people attending work and can lead to economic recovery (Stewart, 2002, p. 92). According to survey research conducted in firms in California, 55 per cent of respondents claim that spirituality plays a part in their working lives and 34 per cent of those believe that this role has increased since September 11 (Stewart, 2002, p. 92).
Workplace relations and the terrorist threat
In research conducted in organizations in inner city Melbourne, Australia's second largest city behind Sydney, there is evidence of three significant impacts of perceptions of the threat of terrorism on workplace relations; workplace discrimination, increased occupational stress, and cultural change. Respondents were questioned on a variety of issues including perceptions of what terrorism is and its effect on many aspects of employment and work. The participating firms operate in the legal, administrative, retail, sports and services sectors.
Discrimination and diversity management
I certainly treated people differently. As soon as an Arabian, a Musso, as soon as a Muslim walked in, what I classify as a Mussi, I would genuinely try to stay away from them only because I didn't want to come into contact or have to deal with people like that. It sounds a bit racist, but, just the mentality after September eleven and what you see on TV does make me have this kind of … feeling … When you see things like big headlines, things in Iraq. They take this particular person, execute them, suicide bombings. Then you go off to work and you think to yourself f*%#! Something like that could happen today. As soon as you see that race of people you think to yourself, what have they got planned next? What are they doing? What are they conspiring to do? That's it (Respondent 2, interview in retail firm, December 5, 2004).
A number of respondents expressed feelings of distrust and apprehension towards those perceived to fit the stereotype of a “terrorist”. In their view, a terrorist is determined by race and skin color, accent, dress, country of origin, religious and political views, and the ability to speak a language other than English. Respondents with these views often felt they were irrational. As one describes: …(I) took a different view of people when they came in (coworkers and clients/customers) after September eleven. It's is not something I deliberately took upon myself to do … And it may be that they are as Aussie as you or I, but at the same time, if they look a certain way, I judge them straight away (Respondent 6, interview in retail firm, December 30, 2004).
Despite such acknowledgements discrimination became a workplace diversity management problem in most situations manifesting as conflict, poor service, and decreased job satisfaction. Conflict arises when foreign coworkers are questioned about their political and religious views and “who's side” they are on, and through an unwillingness to work in the vicinity of some people. Poor service is evident, particularly in the retail sector, when employees expressed an unwillingness to serve those perceived as Muslim or Arab. In one instance, an entire staff refused to serve those fitting this perceived description. Job satisfaction reduction is felt by those who perceive that the threat of terrorism is high and who work in the proximity of people perceived as Muslim or Arab.
Occupational stress
Respondents reported an increase in occupational stress attributable to their perceptions of the terrorist threat. The increase was considered minor yet significant enough to affect job satisfaction, motivation and propensity to attend work. Several respondents at the same retail firm explained an event that occurred. At the beginning of a work day there was a power outage that resulted in a workplace wide power outage and the activation of an alarm. In the brief panic that followed there was yelling, screaming and apprehension. A respondent explains this event: … people just freaked out. Even when only a fire alarm goes off people think the worst. It is like there is a ranking in peoples minds where you may have fire first (the first potential cause of the disruption), terrorism second and something else third. It is funny that it would even rate a mention. And that's the thing. If they were going to carry out an attack it wouldn't be here (Respondent 7, interview in financial firm, January 6, 2005).
Others reported waiting for someone to announce that it was terrorism (Respondents 8, 9 and 10, interviews in financial firm, 7-10 January 2005). In the aftermath of this event, respondents reported a reduction in satisfaction, motivation and willingness to attend work.
Cultural change
Many respondents reported changes in their workplace following September 11. Such changes include technology upgrades, securitization, and greater fear and anxiety. A respondent from a legal firm described concern regarding the use of a “swipe-card” system at major doors throughout their workplace (Respondent 15, interview in legal firm, 15 January 2005). This individual believed that it potentially allowed their employer to know where they were at all times subsequently breaching their privacy and reducing their trust in management. “They obviously don't trust me. Why should I trust them?” (Respondent 15, interview in legal firm, 15 January 2005). Others believed that technology that allows for long distance communication should be used replacing some work attending days, face-to-face meetings, and business travel.
Respondents reported a fostering of a greater security awareness in their workplace. This is encouraged by both management and the federal government's “Be alert, not alarmed” campaign. This created a security-oriented culture. However, it also worked to increase feelings of fear and anxiety.
Conclusions
The events of September 11 in New York, and the attacks in Bali, Madrid and London will have a lasting effect on people throughout the world. Among these is the perceiving of terrorist threat while at work. In research conducted in workplaces in inner city Melbourne three significant impacts were discovered; discrimination, increasing stress, and a changing organizational culture. Managers and business leaders cannot hope to protect and assist their workforce in dealing with the threat of terrorism in all aspects of their lives. However, while attending work, organizations and workplaces must remain a tolerant, safe and trusting place. In Australia, where a significant act of terrorism has never occurred, there is evidence of terrorism having a negative impact on people and relationships which, in the long run, will translate to decreased efficiency and effectiveness and a subsequent decrease in productivity. One can only assume this situation must be far worse and more damaging in New York, London, Madrid and many other cities in close proximity to terrorist violence. Awareness of how the threat of terrorism affects Australian workplaces provides a guide for national and business preparedness, mitigation and an opportunity for rapid recovery in the event of an attack in other locations in Australia and in major cities throughout the world.
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Luke Howie is a doctoral scholar and lecturer in the School of Political and Social Inquiry at Australia's Monash University. Luke works under the supervision of the Global Terrorism Research Unit which conducts research into international terrorism. He is a research associate at the Australian Homeland Security Research Centre (AHSRC), an independent think-tank that provides policy support and security expertise to government and business in Australia. Luke can be contacted at Luke.Howie@arts.monash.edu.au |